We tackle two questions in this paper: In the sovereign debt crisis, what moves the euro area inflation outlook and has … the firm anchoring of medium to long-term inflation expectations been touched? Deriving densities from a new data set on … options on the euro area harmonized index of consumer prices provides us with the full distribution of inflation expectations …

This paper investigates thresholds of inflation, government size, trade openness, and per capita income for the finance … inflation crowds out positive effects of financial depth on long-run growth, (ii) small government sizes hurt the finance …

inflation differ over time. We show that the impact varies considerably over time, depends on the source of increased liquidity … (M1, M3-M1 or credit) and the underlying state of the economy (asset price boom-bust, business cycle, inflation cycle …

Using daily data stemming from inflation-indexed markets, we analyse the effects of numerous macroeconomic surprises on … inflation compensation data - the sum of inflation expectations, risk and liquidity premia - in the euro area between 2 January … 2004 and 31 December 2007. Our results suggest that when gauging short and medium-term inflation compensations, market …

Infrastructure is often deemed a natural hedge against inflation due to monopolistic pricing power, supporting … proposition, we find that domestic listed infrastructure hedges inflation just as good (or bad) as other equities. This result … power can slightly improve inflation hedging compared to equities and average infrastructure. Our study is based on a rich …

We examine the impact of inflation on returns to bills, bonds, equity, and several international assets. The analysis … account for overlapping data.The results indicate a nonlinearity in inflation hedging for most assets: Bills and bonds hedge … low inflation well, but as expected, fail to protect against serious inflation. Equities and most international assets …

of total inflation to price nominal Treasuries. This approach captures different frequencies in inflation fluctuations … a common structure of latent factors determines and predicts the term structure of yields and inflation. The model … outperforms popular benchmarks and is at par with the Survey of Professional Forecasters in forecasting inflation. Real rates …

This paper investigates inflation thresholds that lead to higher growth rates using five-year averages of standard … countries: (i) the catch-up effect has worked only when inflation is below 12%; (ii) the positive effect of human capital on … growth has been present and significant when inflation has been below 15%; (iii) financial development has been effective …

Changes in the general level of prices and inflation have profound effects on asset prices. There are several reasons … for these effects and the influence differs depending on the source of the inflation and whether it is expected or not. To … understand these effects, it is important to clarify what is meant by inflation, the pure theory of the sources of inflation, how …